Pathway to Decarbonization for the Energy Generation Sector Through the Implementation of Renewables Projects in Peru
(2025) MVKM05 20251Department of Energy Sciences
- Abstract
- The transition to renewable energy is a critical element in global efforts to combat climate change. This study explores the decarbonization pathway for Peru’s energy sector, emphasizing renewable energy integration in the electricity generation sector. Peru's rich renewable resources—hydropower, wind, solar, geothermal and biomass—highlight its potential as a regional leader in sustainable energy. However, challenges such as political instability, regulatory gaps, oligopolistic interest, natural gas lobbying and financial barriers hinder progress. Through literature review, stakeholder interviews, and comparative analysis with neighboring countries, this research identifies the barriers Peru faces, including limited green financing, lack... (More)
- The transition to renewable energy is a critical element in global efforts to combat climate change. This study explores the decarbonization pathway for Peru’s energy sector, emphasizing renewable energy integration in the electricity generation sector. Peru's rich renewable resources—hydropower, wind, solar, geothermal and biomass—highlight its potential as a regional leader in sustainable energy. However, challenges such as political instability, regulatory gaps, oligopolistic interest, natural gas lobbying and financial barriers hinder progress. Through literature review, stakeholder interviews, and comparative analysis with neighboring countries, this research identifies the barriers Peru faces, including limited green financing, lack of technical infrastructure, and fossil fuel dependency reinforced by subsidies. It also evaluates policy instruments and offers recommendations for accelerating the energy transition. Proposed solutions include regulatory reforms, grid modernization, green financing mechanisms, education and training programs, and enhanced public awareness. These findings aim to provide actionable strategies for policymakers and stakeholders, contributing to Peru's sustainable energy goals and regional decarbonization efforts. The study underscores the urgency of coordinated, multi-sectoral approaches to achieve a sustainable energy future for Peru. (Less)
- Popular Abstract
- Peru has vast renewable energy potential, but deep-rooted political, financial, and regulatory barriers slow its clean energy transition.
Peru’s energy sector remains heavily dependent on fossil fuels, particularly natural gas, despite the country’s vast untapped potential for clean energy from solar, wind, and hydropower sources. Tackling climate change in Peru involves more than just replacing thermal power plants; it requires confronting a status quo shaped by entrenched political and economic interests that resist change.
This thesis investigates the core barriers preventing a rapid shift to renewable energy and slowing the nation’s decarbonization. Based on an extensive literature review and interviews with nine key stakeholders... (More) - Peru has vast renewable energy potential, but deep-rooted political, financial, and regulatory barriers slow its clean energy transition.
Peru’s energy sector remains heavily dependent on fossil fuels, particularly natural gas, despite the country’s vast untapped potential for clean energy from solar, wind, and hydropower sources. Tackling climate change in Peru involves more than just replacing thermal power plants; it requires confronting a status quo shaped by entrenched political and economic interests that resist change.
This thesis investigates the core barriers preventing a rapid shift to renewable energy and slowing the nation’s decarbonization. Based on an extensive literature review and interviews with nine key stakeholders from government, industry, and academia, eight major obstacles emerge: outdated regulations, technical and infrastructure limitations, weak market competition, political instability, low levels of public awareness, insufficient green financing, long-term fossil fuel contracts and subsidies, and minimal public engagement.
Despite these challenges, there are reasons to be hopeful. Compared to neighboring countries, Chile, Colombia, Ecuador, and Bolivia, Peru has made some progress. However, it lags behind regional leaders like Chile, which has embraced bold climate targets and implemented strong policy frameworks. In contrast, Peru’s efforts have been fragmented, constrained by political instability and fragile institutions.
This thesis presents 22 actionable recommendations to accelerate Peru’s transition to a cleaner energy future. These include modernizing energy laws, investing in smart grid infrastructure and workforce training, improving financial incentives, and boosting public awareness. If adopted, these measures could reduce greenhouse gas emissions, improve energy security, and extend clean electricity access to underserved communities in the rural parts of the country.
A roadmap is laid out, but its success depends on both government commitment and active societal engagement. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9196812
- author
- Cortijo Bustamante, Rodrigo Alvaro LU
- supervisor
- organization
- course
- MVKM05 20251
- year
- 2025
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Decarbonization policy, Energy, Electricity, Peru, Renewables, Climate Change, Latin America energy transition
- report number
- ISRN LUTMDN/TMPH-25/5650-SE
- ISSN
- 0282-1990
- language
- English
- id
- 9196812
- date added to LUP
- 2025-06-19 08:53:46
- date last changed
- 2025-06-19 08:53:46
@misc{9196812,
abstract = {{The transition to renewable energy is a critical element in global efforts to combat climate change. This study explores the decarbonization pathway for Peru’s energy sector, emphasizing renewable energy integration in the electricity generation sector. Peru's rich renewable resources—hydropower, wind, solar, geothermal and biomass—highlight its potential as a regional leader in sustainable energy. However, challenges such as political instability, regulatory gaps, oligopolistic interest, natural gas lobbying and financial barriers hinder progress. Through literature review, stakeholder interviews, and comparative analysis with neighboring countries, this research identifies the barriers Peru faces, including limited green financing, lack of technical infrastructure, and fossil fuel dependency reinforced by subsidies. It also evaluates policy instruments and offers recommendations for accelerating the energy transition. Proposed solutions include regulatory reforms, grid modernization, green financing mechanisms, education and training programs, and enhanced public awareness. These findings aim to provide actionable strategies for policymakers and stakeholders, contributing to Peru's sustainable energy goals and regional decarbonization efforts. The study underscores the urgency of coordinated, multi-sectoral approaches to achieve a sustainable energy future for Peru.}},
author = {{Cortijo Bustamante, Rodrigo Alvaro}},
issn = {{0282-1990}},
language = {{eng}},
note = {{Student Paper}},
title = {{Pathway to Decarbonization for the Energy Generation Sector Through the Implementation of Renewables Projects in Peru}},
year = {{2025}},
}